This new credit facility will bear interest at an annual rate equal to National Bank of Canada’s floating rate of interest applicable to commercial loans in Canadian dollars plus 2.25% and is payable monthly. The credit facility is secured by a hypothec and security interests on all of the assets of D-BOX and its wholly-owned US subsidiary. The amount of the credit facility will gradually reduce over the term of the facility at the end of each quarter, such that the amount of the credit facility at the end of each year will be as follows: $4.5 million dollars at the end of year one, $3.8 million at the end of year two, and $3.0 million at the end of year three.
At closure, $4 million was fully drawn from the credit facility to reimburse, together with cash available, a $5 million loan (plus accrued interest) which was maturing on February 5, 2020.
“We firmly believe that the National Bank of Canada is a financial partner that is an advocate to Canadian innovation and is committed to support our expansion.” said Claude Mc Master, president and chief executive officer of D-BOX.
D-BOX redefines and creates hyper-realistic, immersive entertainment experiences by moving the body and sparking the imagination through motion.